Proactive Investors - Institutional investors are the "most bullish" since November 2021, according to Bank of America (NYSE:BAC)'s monthly fund manager survey.
The reason for this optimism is more to do with expectations over interest rate cuts rather than corporate earnings.
More than eight out of 10 (82%) of the fund managers expect the first interest rate cut by the Federal Reserve in the second half of this year, according to the survey, which polled global money managers with a combined $562 billion in asset under management.
A similar proportion (78%) do not believe a recession is likely in the next 12 months, similar to the number from the previous poll.
Big tech stocks continue to be the most popular trade for investors, BofA found, with the "long Magnificent Seven" (meaning investors buying Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Google parent Alphabet (NASDAQ:GOOGL), Amazon (NASDAQ:AMZN), Nvidia (NASDAQ:NVDA), Meta Platforms and Tesla stocks) still seen as the "most crowded" trade.